HomeMy WebLinkAbout2860 UNtFO~ CoveN~Ht~s. Horrowec and l.e~der covenant and agree as follows: ~
l. h~eat ot Pdncipal aad l~lerest. Borrower shall promptly pay when due the principal ot and interest on the
indebtednas evideoced by the Note, prepayment and late charges as provided in the Note, and the principal of and interost
on any Future Advances secure~i by this Mortgage.
2. Foads tor Tua aad lawrasce. Subject to applicable law or to a written waiver by L.ender. Borrower shall pay
to Lender on the day monthly installments of principal and interest are payabte unde~ the Note. until the Note is paid in fult,
a sum (herein "Funcia") equal to one-tweltth of the yearly taxes and assessments which may attai~ priori~y over this
Mortgage, a~d g~ound rents on the Property. it any, plus one•twelfth o[ yearly premium installments for hazard insurancc,
plus one-twelflh of yearly premium installments tor mortgage insurance, if any, all as rcasonably estimated initially and from
time to time by Lender on the basis of assasments and bills and reasonable estimata thereof.
'Il~e Funds shall be held in an institution the deposits or accounts af which are insured or guaranteed by a Fedtral or
state agency (including Lender if I.ende~ is such an institution t.ender shall apply the Funds to pay said taxes, assessments,
insurance prcmiums and grout~d rcnts. Lender may ~ot charge for so holding and applying the Funds, analyzing said account,
or veritying and compiling said assessments and bills, unless Lender pa~•s Borrower interest on the Fu~ds and applicable law
permits Lender ta make such a charge. Bor~ower and Lender may agree in writing at the time of execution of ihis
Mortgage that interest an the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requira such interest to be paid. Lender shall not he required to pap Borrower any interest or earnings on the Funds. [_ender
shall give to Barrower, without charge, an annual accaunting of the FunJs showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are plc-~lged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by l.ender, together with the tulure monthly installments of FunJs papable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either
promptiy repaid to Borrower or credited to $orrower on mon~hly installments of Funds. If the amount oi the Funds
htld by I.ender shall not be sufi'icient to pay taxes, assessmcnts, insurance premiums and ground rents as they fall due,
Borrowe~ shall pay to Lender any amount necessa~y to make up the deficirncy within 30 days (rom the date notice is mailed
by Lender to Borrower requesting payment thereo(.
Upon payment in fu!1 of all sums secured by this Mor~gage. I.endcr shall promp~ly refund to Borrow•er an~• Funds
held by l.ender. If undsr paragraph 18.hereof the Propeny ~s ~old or thc Propcrty is othenvise acquircd by l.ender, l_ender
shall apply. no later than immediately prior to the sale of the Property or its acquis~tian by 1_ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. APplicatlon of Paymeats. Unless applicable lav?~ provides otherwise, all payments received by Lender under the
Note and paragraphs I and 2 hereof shall be applied by I.cnder firat in paymem o[ amoimts pay•rble to Lender by Borrow~er
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and .
principal on any Future Advances.
4. Clwrges; Lkns. Borrower sh•rll pay all trxes, assessmcnts rnd other charges, fines anJ impositions attributable to
the Property which may attain a priority over this hiortgage, and leasehold payments or ground rents, if any, in the manner
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, aad in the event
Borrower shall make payment directly, Borrovver shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly dixharge any lien which has priority o.•er this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writ~ng to the payment of the obliga~ion secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
lega) proceedings which operate to prevent the enforcement of the I~en or torfeiture of the Property or anp part thereof.
5. Hazard lnsuranct. Borrower shall keep the improvements naw• existing or hereafter erccted on the Property insured
against loss by 6re, hazards included within the term "extended coverage", and such other hazards as I.ender may require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage eaceed that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
t6at such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
; provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the
; insuraace carrier.
~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a stanJard mortgage
f clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and I_ender. Lender may make proof of loss if not made promptly
~ by Borrower. ~
~ Unless Lender and Borrower otherw•ise agree in writing, insurance proceeds shall be applied to restoration or repair of
~ the Property damaged, provided such rcstoration or repair is economically feasible and the security of this Mortgage is
not ihereby impaired. If such restoration or repair is not economically feasible or if the security of this M~rtgage would
~ be impaired, the insurance proceeds shall be applieJ to the sums secureJ by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned hy~ Borrower, or if Borrower fails to respand to Lender within 30 days from the
date notice is mailed b}• I.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, 1_ender
g is authorized to collect and apply ~he insurance proceeds at Lender's option either to restoration or repair of the Property
; or to the sums secured by this I?lortgage.
~ Unless Lender and Borruwer otherwise agree in writing, any~ such application of proceeds to principal shall not extend
~ or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
~ such installments. lf under paragraph 18 hereof the Property i~ acyuired by L.ender, ail right, title and interest ot Borrower
~ in and to any insurance policies and in and to the proceeds thereo[ resulting from damage to the Property prior to the sale
~ or acyuisition shal! pass to Lender to the eatent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition.
_ 6. Presenatioa and 1laiotenance of Property: Leasehulds: Condominiums; Planned Unit De~•elopments. Borrower
~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
s and shall comply with the provisions of any lease if this Mor~gage is on a leaschold. lf this I?fortgagc is on a unit in a
~ condominium or a planned un?t development, Borrow•er shall perform all o( Borrower's obligations under the declaration
? or covenants creating or governing the condominium or planned unit deveiopment, the by-laws and regulations of the
~ conJominium or planned unit ~eve:apment, and constituent documents. If a condominium or planned unit ck~~elopment
` nder is executed by Eiotrower and recorded together vr~th ~his Mortgage, the covenants and agreements o( such rider
~ shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
; 7. Protection of Leuder's Security. If Borrower fails to perform the covenants and agreements contained in this
~ biortgage, or if any action or proceComg is commenceJ which materially afiects Lender's interest in the Property.
~ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
s bankrupt or decedent. ~hen Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
~ sums and take such action as is necessary to protect l.ender's interest, including, but not limited to, disbursement of
~ reasonable attomey's fees and entry upon the Proper~y to make repairs. If I_ender required mortgage insurance as a
~ condition of making the loan secured b}' ~his Mangage, BorroNCr shall pay the premiums required to maintain such
~ insurance in ef[ect until such time as the requirement for such insurance terminates ~n accordance with Borrower's and
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